More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS issues model amendments for DB plans offering bifurcated benefit distribution options
The Internal Revenue Service (IRS) released Notice 2017-44, which provides model amendments that a sponsor of a qualified defined benefit (DB) plan may use to amend its plan document to offer bifurcated benefit distribution options to participants in accordance with final regulations issued under § 417(e) of the Internal Revenue Code.
The model amendments set forth in the Appendix may be used to implement either of the two methods set forth in § 1.417(e)-1(d)(7) for computing the amount to be paid to a participant who elects to receive his or her accrued benefit in an optional form of payment consisting partially of an annuity and partially of a more accelerated form of payment. Note that the Implicit Bifurcation Amendment may not be used with respect to distributions for which § 1.417(e)-1(d)(7)(iii)(C) prohibits the use of implicit bifurcation.
To read the entire notice, click here.
DoL removes guide proposal meant to help understand fee disclosures
The U.S. Department of Labor (DoL) released a notice modifying its semiannual regulatory agenda. According to the notice, the Employee Benefits Security Administration (EBSA) is removing from its agenda a regulations project that was proposed during the prior administration to require that retirement plan service providers create and deliver a guide to help plan fiduciaries better locate certain information in required fee and service disclosures. These are disclosures required under 408(b)(2) regulations.
To read the notice’s language on this subject, click here.